It’s a phrase you’ve probably heard many times before: ‘small businesses are the backbone of our economy’. Though have you ever considered the evidence or rationale behind this statement? Is starting a small business of interest to you but you’re not sure where or how to get started? Or if you already have a small business, are you looking to expand to new markets?
Are small businesses really the backbone of our economy?
According to the Small Business & Entrepreneurship Council (SBE Council) businesses with less than 500 employees make up over 99 percent of all businesses in the U.S., while those with fewer than 20 employees still make up close to 90 percent of all businesses. Evidently, this proves that the vast majority of all businesses are small businesses! The Small Business Administration (SBA - via the SBE Council) further note that close to two-thirds of all job creation in the country comes from small businesses. Moreover, the vast majority (close to 95 percent) of all businesses exporting to overseas markets are also small businesses. All-in-all, it is not surprising that many quote that small businesses are the engine of our economy!
Want to start your own small business but don’t know how to start?
Even if it may be apparent that small businesses are significant economic growth drivers for our economy, it may not be obvious how you can start one. The SBA has a number of useful resources which you can use to take tangible steps towards starting your new small business. For example, you can access a small business counselor in your area to help you know the steps you need to take to start your new business. You may also wish to take a look at the SBA’s ‘Ten Steps to Starting a Business’. Whatever you wish to sell or offer, help is there at every step of the way!
Or, you may already be a small business owner and you’re looking to expand to new markets:
Have you ever thought about growing your business through exporting abroad? Around 95 percent of all of the world’s consumers live outside of the U.S. Thus, if you are not exporting you are missing out on all of those potential customers!
Exporting isn’t just for large companies, as we saw before; small businesses make up the vast majority of all exporting businesses. Once more, the U.S. Government has a variety of resources available to help small businesses access foreign export markets. As the official export-credit agency of the United States, EXIM Bank can help you at every step of the way, regardless of whether you are entirely new to exporting or not.
Interested in learning more? We would be happy to speak to you! Request a free consultation with an EXIM Bank Trade Specialist today!